Providence's LogistiCare Subsidiary Receives Notice of Award for $17.4 Million South Carolina Transportation Contract

Services under the contract, valued at $17.4 million annually, should begin November 3, 2008 and contain annual renewal options that run through October 31, 2012. The award is subject to finalized contracts and various processing procedures and should be additive to earnings in 2009.

"We are extremely pleased to be able to serveSouth Carolina's Family Independence Program," said John Shermyen, LogistiCare's CEO. "South Carolina is committed to helping families become self sufficient and transportation is key to their access of program services and employment and training opportunities. We look forward to working with the state and our transportation providers to help make a difference in the lives of these families."

The Company also announced an additional social services contract award with the state ofMichigan in the amount of $1.0 million annually. The Michigan award, while small, is notable because it is an " off-season announcement" as social services contracts traditionally are awarded to begin service July 1, the beginning of the state fiscal year . This contract is expected to take effect in January 2009.

About LogistiCare

LogistiCare is the nation's leading Medicaid transportation management solution. Proprietary software, innovative management strategies, and a proven record of creating budget stability and quality improvements for our clients distinguish LogistiCare as the leader in its field. From its corporate office just outsideAtlanta and its numerous state- based operations nationwide, LogistiCare manages a national network of more than 1,100 transportation companies that provide more than 17 million trips to customers annually. LogistiCare's clients have included state Medicaid agencies, school boards, transit authorities, hospital systems and many of the nation's largest managed care organizations. For more information, visit www.logisticare.com.

AboutProvidence

Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct and managed entities to nearly 78,000 clients through nearly 950 contracts at June 30, 2008, with an estimated six million individuals eligible to receive the Company's non-emergency transportation services related to its LogistiCare operations. Combined, the Company has a nearly $1 billion book of business including managed entities.

Certain statements herein, such as any statements aboutProvidence's confidence or strategies or its expectations about revenues, results of operations, profitability, earnings per share, contracts, collections, award of contracts, acquisitions and related growth, growth resulting from initiatives in certain states, effective tax rate or market opportunities, constitute "forward-looking statements" within the meaning of the private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may causeProvidence's actual results or achievements to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, reliance on government-funded contracts, risks associated with government contracting, risks involved in managing government business, legislative or policy changes, challenges resulting from growth or acquisitions, adverse media and legal, economic and other risks detailed inProvidence's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2007. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made.Providence undertakes no obligation to update any forward-looking statement contained herein.

SOURCE The Providence Service Corporation

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